Strategize a Smooth Tenant-to-tenant Migration and Copilot Takeoff
Opportunities in Digital Print
1. Opportunities
in Digital Print
Roger Christiansen
Market Development Manager
Ricoh Europe
Version: [3.3] Classification: In Confidence Owner: [Graham Moore]
4. The Total Value of the PP Market
Significant market opportunities in digital
Western Europe Print Market
€ Millions
90000
80000
80949
70000
2009
2015
60000
68946
2018 Worldwide
50000
40000
30000
Inkjet
6890
20000
Digital
4113
10000
16280
9453
0
Offset
Pira - The Future of European Printing to 2015 Market Forecast.
Includes print machinery, ink, paper and board
Digital EP
& Inkjet
5. Top digital applications in Western Europe
Source: Infotrends - Western
European Digital Production
Printing Application Forecast:
2010-2015
8. Books - drivers
Volume decline drivers
Volume growth drivers
• Flat to declining demand for books
overall
• Shorter runs
• Reluctance of publishers to change
business and production models
• On-demand business models becoming
possible
• Encroachment of e-books into physical
book sales
• Drive to reduce storage and obsolescence
costs
• Improvements in digital printing technologies,
especially in continuous-feed inkjet
79% of jobs in 2011 fell into a category of production volumes
under 5,000 - which is suited to digital production. (Source: Pira)
530,000 new titles in print in 2011 – growth of 8% since 2007*
8,500,000 titles in print in 2011 – growth of 51% since 2007*
*Source: European Book Publishing statistics Nov 2012
8
9. Your opportunities in books ?
Print on demand
• reduce warehousing costs
• make money from backlist
Local production / Distribute and print
• minimise / eliminate distribution costs
• sustainability
• opportunity to localise
Multi-platform
• opportunity to add value to printed books,
• link to digital
Copyright Ricoh Europe PLC 2013
10. Print on demand in action….
Author
Publisher
Printer
Distributor
Book Store
Excessive waste if publisher prints too much
Very effective if they print the right amount (rare)
Lost revenue, unhappy authors, and empty
Nº of Books in Inventory
book store shelves if they print too little
Digital reprints - shorter runs with less risk
The long tail – the end of out of stock
Minimum Offset
Run Length
Original drawing by Duncan
Original drawing Newton
By Duncan Newton
Time
Waste
Lost Revenue
13. Direct Mail - drivers
Volume decline drivers
Volume growth drivers
• Move to other forms of direct
marketing
• More targeted mailings, personalisation
• Increase in postal costs
• Still growing in some European markets
• Detrimental image of direct mail as
junk mail
• Enabling white paper solution through ultrahigh volume digital colour print
• More targeted mailings, personalisation
13
14. Big data, small communications
Print
Profiling
Data
Digital
Targeting
Greater
personalisation
Effective
communications
Mobile
Segmenting
Social
media
Value added
services
Copyright Ricoh Europe PLC 2013
15. Your opportunities in Direct Mail ?
Full colour variable data solutions
• improve response rates
• provide more targeted conversations with their clients
• combine with colour digital to create personalised
communications
Cross Media marketing
• consistent customer experience across multiple channels
• integrated communications
Marketing Asset Management
• centralises the management of marketing assets (such as
brochures, collateral and flyers) enabling customisation and
personalisation
Copyright Ricoh Europe PLC 2013
16. Cross media marketing in action
PURL
Online
CUSTOMER
EXPERIENCE
Recipient updates
personal data
Mobile
Device
Order
confirmation
DATABASE
Copyright Ricoh Europe PLC 2013
19. Promotional print - drivers
Volume decline drivers
• Electronic billboards replacing posters
• Regulations against out of home
advertising
Volume growth drivers
• Shorter runs, regionalisation, and versioning
• Growing overall demand
• Underserved demand from microbusinesses, which can now be served by
digital print
• Shorter runs, regionalisation, and versioning
• Message overload !
• Creativity !
• 12,500 printed Point of
Purchase in a typical
supermarket
• New applications
• New markets
• Or 4 per second
19
20. Your opportunities in Promotional print?
Cost-effective solutions for short run (existing business)
• excellent quality (extra process colours)
• Piezo Inkjet technology (becoming dominant in WF digital print industry)
• Strong environmental benefits
New applications
• Versioning
• Test marketing
• Regionalisation
New Markets
• Micro brands
• In store promotions
• Creative ideas !
Copyright Ricoh Europe PLC 2013
22. Summary
• Offset is declining, and
digital is growing but by
2018 79% total market will
still be Offset (Pira)
• Lots of challenges in the
market
• Lots of change and
disruption
• One man’s threat is
another’s opportunity
• Creates opportunities for
Print Service Providers
• New challenges: how do
you make money from
short runs ?
• Focus on niche
opportunities
= bad news for existing
business models
• Are you a printer or a
service provider ?
22
Ricoh’s portfolio has expanded considerably in recent years and is growing fast, fuelled by considerable R&D investment.
However this is only scratching the surface of the potential opportunity for us in Europe. Digital EP (aka Laser) and Inkjet are growing at 71% and, between them will represent a 23.170 M Euro opportunity by 2015.
Ricoh’s portfolio has expanded considerably in recent years and is growing fast, fuelled by considerable R&D investment.
This slide has four “builds” in it.As the slide opens it shows that there is a minimum order for the number of books that can be produced using offsetClick 1: (Black dotted line) This is a typical demand curve for a popular book. Demand begins low, builds to a peak and then tapers off over time.Click 2: (Red slope) If the publisher orders too many books, they do not all sell and wind up either in inventory or being turned into wood pulpClick 3: (Green slope) Sometimes, and not very often, the publisher guesses correctly and they run out of books just about the time that public runs out of interest in the bookClick 4: (Blue slope) If the publisher orders the minimum they run the risk of running out of books before people stop demanding the book. At this point there isn’t enough potential interest left to justify an economical offset press run. The result is lost revenue, angry bookstores, angry book distributors and angry authors.The fear of running out of books is so great that they always(!) over print.Click 5: The better and safer strategy is to print in quantities just large enough to have the books printed at the best price. When that supply runs out the remaining demand can be satisfied by a series of short runs on digital equipment.Click 6: With zero inventory and a digital print model in place the books never go “out of print”, “out of stock” or “out of stock indefinitely” the ability to continue to satisfy this lingering demand is called the Long Tail and represents an endless risk-free source of continuing revenue
Ricoh’s portfolio has expanded considerably in recent years and is growing fast, fuelled by considerable R&D investment.
Many brands, operating in highly competitive global industries, are looking for new ways to create a competitive advantage. Hence marketing teams in corporate businesses are now trying to harness the big data they have access to in order to gain unique insights into their customers’ behaviours, buying patterns and sentiments. From this data they will use segmenting, profiling and targeting techniques to create the right message for the right person at the right time. CLICKAnd the detailed insights from big data can allow greater personalisation in multi-channel communications activity, spanning a range of media to reach and engage with consumers effectively.This is using big data for small, or highly targeted, effective communications. A highly value-added service as far as a Corporate Marketing team is concerned. And an opportunity for the progressive PSP.
As stated earlier, consumers today want to receive communications through a variety of channels: online and offline. Therefore Ricoh offers a range of powerful tools that help PSPs provide options for clients wishing to deliver cross media marketing solutions. A key element of the solution is that PSPs can create one campaign yet deliver the message across multiple channels in a consistent way: PrintPersonalised URLsQR codesOnlineDigital.CLICKAs a result, the PSP can deliver for their client a consistent customer experience. You can see here how the process for a typical cross media campaign unfolds, which also enriches the brand’s database with the recipients’ data.
Ricoh’s portfolio has expanded considerably in recent years and is growing fast, fuelled by considerable R&D investment.
Ricoh’s portfolio has expanded considerably in recent years and is growing fast, fuelled by considerable R&D investment.